Income tax reforms sought

Tax managers have conceded that the tax reform measures they had been pushing for, including indexation of income tax rates to inflation, will no longer see the light of day until the end of the Aquino administration.

But the Tax Management Association of the Philippines (TMAP) is confident that income tax reforms would progress under a new government, hence it would again push for lower income taxes in the 17th Congress, its new president Benedict R. Tugonon told reporters on Thursday.

“Last year, we almost had it—we had the support of both houses of Congress, to, at the very least, adjust the tax brackets to address the bracket creep,” Tugonon said.

However, President Benigno Aquino III himself shot down proposals to bring down income tax rates, citing that the only tax measure he had promised to introduce in his administration was the Sin Tax Reform, which he signed into law in 2012.

“This year, we will push for it again—we’ll wait for the opening of Congress in July under a new administration and a new president,” Tugonon said.

TMAP also envisions to make tax reform an election issue so that voters would be informed of presidential aspirants’ stand on the matter, he added.

Tugonon said an upcoming forum to be organized by the Commission on Elections and the Development Alternatives Inc. Philippines would put tax reform at the forefront.

“So far, we’ve heard presidential candidates say that they support tax reform in general, but they have yet to elaborate. We would want to ask them: ‘Will you allow the income tax reform we are proposing? Are you in favor of simplifying tax rules to improve compliance?’” Tugonon said.